Thread by @cyrilXBT

In a world where the demand for passive income and high yields continues to grow.

@archi_fi has come up with a solution that seeks to benefit both passive liquidity providers and degen farmers 🧵

$Archi #Archi #Arbitrum

What I will be covering in this thread:

• Archi Finance* Passive Liquidity Provider
• Degen Farmers
• Use Cases
• Conclusion

$Archi is a composable leveraged yield farming protocol that offers two sides of its platform.

It caters to passive liquidity providers who earn low-risk interests and degen farmers who borrow those assets to achieve a higher APY. The platform will be integrated with GMX in v1.

Passive Liquidity Provider

The passive liquidity providers are investors seeking to earn passive yield and prefer low-risk investments.

They supply single-asset liquidity to the protocol, which can be utilized or borrowed for leverage by degen farmers.

If degen farmers’ positions are liquidated, the assets of liquidity providers will not be exposed to the downside and will be returned to the pools.

The percentage of profits streamed from GMX that is awarded to liquidity providers is called the interest share.

The interest share can be varied and decided by Archi DAO. Overall, Archi Finance offers a low-risk opportunity for lenders to earn yield.

Degen Farmers

Degen farmers are borrowers who wish to increase their position in GLP by borrowing liquidity from the protocol.

They can borrow up to 10x what their notional size is in a delta-neutral way so that the portfolio has a balanced exposure to both the price movement of the underlying asset and the price movement of the borrowed asset.

In other words, investors with ETH collateral can rebalance their loss by borrowing and depositing the same value of USD or vice versa.

The maximum borrowing period for each transaction is one year.

Archi Finance charges a platform fee of 10% of all the interest generated.

Use Cases

Sarah wants to leverage her position in Archi Finance by taking a 10x leverage. She plans to deposit 5 ETH and borrow 20 ETH and 25 ETH worth of USDC from the supplied pool, which she will use to purchase GLP.

By doing so, she will take both equally long and short positions, making her immune to any price fluctuations.

Similarly, Frank wants to leverage his deposit of 4000 GLP in Archi Finance by taking a 9x leverage.

He will borrow 4 times the value of ETH and USDC from the supplied pool. It is important to note that the maximum borrowing period for each transaction is one year.

The fees related to buying and selling of GLPs are paid by the borrowers and depend on the GMX.

The platform also offers a whitelist for influencers who help promote Archi Finance and Archi OGs who participated before the launch will also be awarded WL.

Passive liquidity providers will be selected randomly every 12 hours after the launch.

Archi Finance is a composable leveraged yield farming protocol that provides an opportunity for lenders to earn yield while minimizing their risk exposure.

With the integration of GMX, Archi Finance is set to attract more investors who are looking for low-risk investments with high yields.

Although there are risks involved, the platform provides a unique opportunity for investors to leverage their positions without worrying about impermanent losses resulting from price fluctuations.

With the inclusion of the Degen Farmer Whitelist, Archi Finance is on the right track to becoming a go-to platform for both passive liquidity providers and degen farmers.

If you appreciate the effort, here's the first tweet below

Please RT/like if you found this thread interesting 👇

Thank you 🫂 🤍

https://twitter.com/cyrilXBT/status/1631963673907396610